Should You Rent or Own? We have a financial calculator to help you determine which is better for you!
That is a big question. That depends on the rent you would be paying, the interest rate, the appreciation rate of properties in your community.
We are providing a Rent Or Own Financial Calculator to help you figure this out. As of February 2016 a safe interest rate to use is 2.7% to 3%. See below for down payment information, but the minimum down payment is 5%. Typically the appreciation rate in the Calgary/Chestermere region is 3 to 5%. I know that we are in a very soft market, but I also know that this will turn around later this year or next. In the long term real estate always appreciates. Try it out! Ignore the tax rate it does not apply in Canada.
Rent or Own Financial Calculator
There are many benefits to owning your own home.
*privacy- no one can call to give you 24 hour notice to walk through your home.
*Stability you cannot get a notice that your lease will not be renewed.
*Security-If you lose your job, you can take in a renter, rent it out, you generally will have 3 to 6 months before any action is taken to remove you from your home if you cannot afford to make payments. You can usually work something out with your bank. Miss your rental payment and you can be out on the street in 14 days.
*Credit worthiness, establishes your credit and shows that you are a better risk
*Leverage – your home appreciates for the full value, not just the 5% you have down. 3% annually on $300,000 is $9,000 compared to the banks 1.5% on $15,000 which would be $225.( I now that property values may be not appreciating as much right now, but on average in the Calgary area they go up 3 to 5% annually.)
*Your home reflects your personality, you can decorate, make improvements and repairs on your schedule not someone else’s.
*You can increase your home’s value with your sweat equity.